need help with last question #4 please!

Coffee Rugs is holding a 2-week carpet sale at Joke's Club, alocal warehouse store. Coffee Rugs plans to sel carpets for $750 eech. The company will purchase the carpets from a local distrbutor for $480 each, with the privilege of retuming any unsold units for a full refund. Joke's Club has offered Coffee Rugs two payment altematives for the use of space Click the icon to view the additional infomation) Read the recuirements Requirement 1. Calodlate the breakeven point in units for (a) oprion1 and b) option 2 Begin by determining the formula to calculate the breakeven point in units Number of units to breakeven Fixed cost Cotribution margin per unit Calculate the breakeven point in units for option 1, then option 2 Round your wavers up to the earest whole number Enterr for zero balances Unns 35 (a) Option 1 (b) Option 2 Requirement 2. At what level of revenues wil Coffee ugs earn the same operating income under either option? aFor what range of unit sales wl Coffee Rugs prefer option 1? b. For what range of unit sales will Coffee Rugs prefer option 2? Begin by determnng the formula 10 calculate the operating income where each option is equal Abbreviation used: FC = Fixed costs. S : Seing price Variable cost8 Q-Quantity of unns sold) Option T Option 2 Now calculate the level of revenues It wil take105 units to generate the same operating income under either option. The level of revenues under either option using these units equal $ a. For what range of unit sales will Coffee Rugs prefer option 1? Option 1 would be prefered when units sold exceed the units you detemined for the level of revenues when the two cptions earned the same operating 78.750 income. b For what range of unit sales wll Cofee Rugs prefer cption 2? Coffee Rugs would prefer option 2 when units sold are less than the units you determined for the level of revenues when the two options eamed the same operating income. Requirement 3. Calculate the degree of operating leverage at sales of 105 units for the two rental options Begin by determining the formula to calculate the degree of operating leverage. Then, calculate the degree of operating leverage for option 1, then option 2 (Round your answers to two decimal places. XXX) Degree of Contribution margin Operating income - cperating leverage 28350 18,900 18,900 18,900 1.50 Option Option 2 Requirement 4. Briefty explain and interpret your answer to requrement 3 The results indicate that, when sales are 105 units, a percentage change in will resut in for option 1 and times that percentage change in for cption 2 1.00 times that percentage change in